SG Morning Call | Singapore Stocks Rise on Thursday; DBS Gains 2%; Dyna-Mac Surges 25%

Market Snapshot

Singapore stocks opened higher on Thursday. STI rose 0.7%; SIA rose 0.5%; DBS rose 1.8%; OCBC rose 0.6%; UOB rose 0.7%; Seatrium rose 1.9%; AEM 3.3%; Dyna-Mac rose 25.3%.

Stocks to Watch

$Sabana Reit(M1GU.SI)$: The Reit’s manager said on Wednesday that the former master tenant of the Reit’s premises at 33 and 35 Penjuru Lane has started the necessary process to enter into a creditors’ voluntary liquidation. The manager is taking legal advice and will take active steps to protect the interest of the Reit, including mitigating any losses arising from this development. Units of Sabana Reit closed flat at S$0.35 before the news.

$Dyna-Mac(NO4.SI)$: South Korean company Hanwha has launched a voluntary conditional cash offer through a special-purpose company to take management control of Dyna-Mac at S$0.60 a share. The offeror is Hanwha Ocean SG Holdings, which was incorporated by Hanwha Aerospace and Hanwha Ocean for the purpose of the offer. The offer process is expected to be completed by the end of this year. Shares of Dyna-Mac closed flat at S$0.495 on Tuesday before the company requested a trading halt on Wednesday morning. It resumes trading on Thursday.

$Food Empire(F03.SI)$: The food and beverage manufacturing and distribution company said on Wednesday it is investing US$80 million in a new freeze-dried soluble coffee manufacturing facility in Vietnam. Construction will start in the first quarter of 2025 and is expected to be completed by early 2028. The investment will be funded by internal resources and bank borrowings. The counter closed 0.5 per cent or S$0.005 lower at S$0.965, before the announcement.

$Don Agro(GRQ.SI)$: Its wholly owned subsidiary, JSC Tetra, has proposed to acquire a 99.99 per cent stake in 812 Capital and 11.5 per cent of the shares in Centre for Innovative Medical Technologies for 3.04 billion roubles (S$43.7 million). Don Agro, which has disposed of its operating agricultural business, on Thursday said purchasing the Russian oncology clinic group would provide it with the necessary recurrent business activities going forward. The counter closed flat at S$0.21 last Friday, before the company called for a trading halt on Monday. It resumes trading on Thursday.

SG Local News

Economists Upgrade Singapore 2024 Growth Forecast, Central Bank Survey Shows

Economists have upgraded their expectations for Singapore's growth in 2024, according to a survey by the country's central bank published on Wednesday, with better-than-expected external growth seen as the top upside driver for the economy.

The median forecast of 21 economists surveyed by the Monetary Authority of Singapore (MAS) is for the economy to grow 2.6% this year, up from a forecast of 2.4% in surveys done in March and June. They also forecast economic growth of 2.5% in 2025.

A majority of the economists surveyed by MAS did not expect any change in policy settings at the central bank's review in October. They expect the city-state's economy to grow by an annual 2.6% in the third quarter of this year.

Payments in Singapore With Stablecoins Rise to Almost $1 Billion

Payments in Singapore using stablecoins reached a record high of almost $1 billion in the second quarter, led by transactions at merchant outlets, according to a report from Chainalysis.

Businesses use the tokens because of “efficiency and low cost,” Chainalysis Cybercrimes Research Lead Eric Jardine said. Stablecoin payments in Singapore amounted to about $161 million in the second half of 2023, the study showed.

Stablecoins typically seek to hold a steady value of $1, backed by reserves of cash and bonds. They are mostly used for crypto trading and some have been faulted for their popularity with the criminal underworld. Stablecoins remain a small sliver of payments flows. For example, retail card payments in Singapore were worth S$73.2 billion ($56.2 billion) in the second half of last year.

Singapore-Traded Grand Venture Technology Eyes Second Listing in Malaysia

Singapore-based Grand Venture Technology Ltd., which produces components for semiconductor makers and other industries, is targeting a second listing in Malaysia, according to people familiar with the matter.

GVT is working with advisers for a listing as soon as 2025 the people said, asking not to be identified discussing private information. It is considering a listing by introduction, meaning it wouldn’t be raising funds, one of the people said. Deliberations are ongoing, the people said.

GVT’s shares are down about 7% in Singapore over the past 12 months and some 60% lower than a peak three years ago, giving the company a market value of S$188 million ($145 million). GVT is aiming for a higher valuation by listing in Kuala Lumpur, where IPOs have been on the rise this year, the people said.